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Our take: Ground beef processor files for bankruptcy, blames 'pink slime'

Our take: A company that produces processed meat known colloquially as 'pink slime' has filed for bankruptcy protection after public out cry following a March 7 ABC news report.

A national ground beef processor owned by Los Angeles private equity firm Yucaipa Cos. and basketball Hall of Famer Magic Johnson filed a bankruptcy petition seeking protection from creditors, blaming, in part, bad publicity over products containing so-called pink slime.

AFA Foods Inc. said it sought bankruptcy protection because it was "faced with an immediate and unanticipated liquidity crisis" and was unable to pay vendors last week without a loan, which banks refused to provide.

Read more about AFA's bankruptcy filing at